As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Microwave Vision SA (EPA:ALMIC), it is a financially-sound company with a strong track record and a buoyant future outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Microwave Vision here.
Flawless balance sheet with high growth potential
ALMIC is an attractive stock for growth-seeking investors, with an expected earnings growth of 24% in the upcoming year. Earnings growth is paired with an eye-catching top-line trajectory also doubling over the same period, which indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. Over the past year, ALMIC has grown its earnings by 36%, with its most recent figure exceeding its annual average over the past five years. Not only did ALMIC outperformed its past performance, its growth also surpassed the Communications industry expansion, which generated a -14% earnings growth. This is an notable feat for the company.
ALMIC’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ALMIC manages its cash and cost levels well, which is an important determinant of the company’s health. ALMIC seems to have put its debt to good use, generating operating cash levels of 0.28x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Next Steps:
For Microwave Vision, I’ve put together three pertinent factors you should further examine:
-
Valuation: What is ALMIC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ALMIC is currently mispriced by the market.
-
Dividend Income vs Capital Gains: Does ALMIC return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from ALMIC as an investment.
-
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ALMIC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.